TLDR:
- HSBC has launched a $1 billion Asean Growth Fund to support digital platforms in the region.
- They are also offering $150 million of venture debt to early-stage companies in Singapore.
HSBC launches $1bn fund for Asean’s digital economy
HSBC has introduced a $1 billion Asean Growth Fund to help scale digital ‘platform players’ in the region’s digital economy. The fund aims to support new-economy names, established corporates, and non-bank financial institutions by evaluating operating metrics tied to their asset portfolios. The bank, with a presence in several Asean countries, has already provided significant financing to various digital players, such as Atome Financial in the Philippines and the Akulalu Group. Additionally, HSBC has allocated $150 million to offer financing to early-stage, high-growth companies in Singapore that are backed by venture capital or private equity. This move is aimed at supporting the growth of new-economy companies in Asean, as they expand and progress along the corporate lifecycle.
Digitalising operations in SEA
HSBC’s funding initiatives come at a time when Asean’s digital economy is rapidly growing, expected to reach $600 billion by the end of the decade. Companies in the region are prioritizing digitalizing operations, with 42% citing it as their top business priority. The survey conducted by HSBC revealed that 65% of respondents plan to increase investment in digitalization, and 66% aim to expand into new markets within SEA as economies integrate further. This reflects the potential for growth and expansion in Asean’s digital landscape.
